proximity a next generation connection Proximity Research Report The Future of Internet Based Advertising Internet Radio and Social Networking Sites by Andrew Heer Spring 2010 Table of Contents Executive Summary 2 Introduction: Changing Advertising Mediums3 Internet Advertising Format 3 Customizable, Targeted Advertizing 3 It’s Measurable 4 Recommendations 5 Attachment 1: Case Studies 5 Attachment 2: Overall Internet Advertizing 7 References 810 Executive Summary Record sales continue to decline as more and more people get their music through peer-to-peer file sharing and torrenting. Internet radio site like Pandora, Rhaosody and Slacker Radio pay artist and record companies a small amount of money each time they play one of their songs. The websites make money selling advertisements that both appear in the browser windows and play in-between songs as well. Social networking sites are very popular and allow for many different opportunities to advertise. This report will detail the different advertising plans offered by most internet ad services, so one can better decide which service works best for their personal business needs. Then the benefit of being able to measure the effects of internet ads will be covered. Finally a few recommendations will be offered. Introduction: Changing Advertising Mediums Traditional advertising mediums like newspapers, T.V., and terrestrial radio have become ineffective at reaching people. They are much less effective platforms especially for advertising to Gen-Y, who is increasingly fulfilling their media needs over the internet. Internet radio sites are becoming increasingly popular for discovering new music and listening to music. Internet radio and social networking sites both allow a plethora opportunities gather demographic information in order to determine if they are the people who buy their produce. Specifically targeted ads allow advertisers to pick the specific demographic, geographic, time or any other criteria to best reach your audience. Internet Advertising Format Advertisements on internet radio sites and social networking sites offer pretty much the same options as other internet advertising. There are several different options depending on advertising budget and target audience. The best part about internet advertising is that one can measure the results and adjust advertising plans to better suit ones needs. Here are some common advertising plans: ∙ CPM – Cost Per Mille, or, CPT- Cost Per Thousand- Refers to paying for one thousand loads of an ad. ∙ CPC – Cost Per Click- Refers to paying for each individual click that redirects the uses to the targeted website. ∙ CPV – Cost Per Visitor- refers to paying based to the number of visitors to go to your website. ∙ CPV - Cost Per View- refers to being charged each time an ad is displayed to a unique user. ∙ CPA- Cost Per Action- refers to paying only when a purchase is made on the advertisers website. Social networking sites also offer almost free advertisement campaigns through the use of many of their “group” and “event” functions. Any company looking to be competitive in the future needs to be advertising on internet radio and social networking sites. Customizable, Targeted Advertizing Internet advertizing follows a fairly similar range of services; however, cost and options can vary so it is important to shop around. Some websites, like Myspace, handle their own advertising while; AdBrite is the company that handles Pandora Radio’s advertisements. Companies like AbBrite.com, offer completely customizable ad plans to best attract your audience and make the best use of advertising money. Experts agree that, “specific targeting alone saves tons of cash on your marketing budget” (Vignes). ∙ Customizable settings allow for direct targeting of customers ∙ Geographic options allow advertisements to only one zip code, which means that small businesses can advertize with these services. ∙ Customizable key words allow you to enter endless options to target you market. ∙ Social networking and Internet Radio allow a multitude of demographic information to be gathered for the use of internet appetizing. Do not waste advertising money and time with old traditional advertizing. Realize the benefits of internet radio and social networking’s specific ability to target audience members when the are social, listening to music and in a good mood very perceptive to advertising. It’s Measurable Besides the customization options the ability to measure increase in web traffic is arguably the best advantage over traditional advertising. ∙ Great for increasing brand awareness. ∙ Can track the affects of changing options in demographics. ∙ Increased performance can be optimized with immediate feed back. No longer do advertisers have to wait and only assume their advertizing dollars are working; now they can get almost immediate results. Recommendation I would strongly recommend With the over all tread being a huge increase in advertizing spent on internet, advertizing especially on social networking sites that you start a progressive and aggressive internet marketing campaign. It should specifically concentrate on social media and internet radio and music. Less and less people are buying CD’s but they are still attending shows and concerts so advertize to them. It does not take a lot to run one of these campaigns and they can be utilized by small business as well as multinational corporations. It is important that trained skilled professionals guide you in this process as to not waste valuable resources, this is where Proximity can help you get the most out of internet advertising. Attachment 1: Case Studies This Chart shows the CPA for the gaming company Pogo, before and after internet advertizing with AdBrite. Chart 1. CPA of Pogo before and after Adbrite. Source: AdBrite. http://www.adbrite.com/mb/how-advertisers-cs-pogo.php. Web. Here the affects of AdBrite can be seen increasing the monthly visits to the VW. website. Chart 2. NMV of Volkswagen before and after Adbrite. Source: AdBrite. http://www.adbrite.com/mb/how-advertisers-cs-volkswagen.php. Web. Attachment 2: Over all Internet Advertizing http://www.briansolis.com/2009/07/the-decline-of-advertising-and-the-rise-of-social-media/. Web. References Adbrite. (2010) AdBrite – Overview for advertizers. Retrieved May, 7 2010 from http://www.adbrite.com/mb/how-advertisers-cs-volkswagen.php. Web. Adbrite. (2010) AdBrite – Overview for advertizers. Retrieved May, 7 2010 from http://www.adbrite.com/mb/how-advertisers-cs-pogo.php. Web. Solis, Brain. (2009) The Decline of Traditaional Advertising and the Rise of Social Media. Retrived May, 7 2010 from http://www.briansolis.com/2009/07/the-decline-of-advertising-and-the-rise-of-social-media/. Web. Vignes, Beau. Ghotibait. (2010). Internet Advertizing vs. Traditional Advertzing. Retrieved May 8, 2010 from http://www.ghotibait.com/internet-marketing/internet-adversiting-vs-traditional-advertising/. Web.
proximity
a next generation connection
Proximity Research Report
The Future of Internet Based Advertising
Internet Radio and Social Networking Sites
by Andrew Heer
Spring 2010
Table of Contents
Executive Summary 2
Introduction: Changing Advertising Mediums 3
Internet Advertising Format 3
Customizable, Targeted Advertizing 3
It’s Measurable 4
Recommendations 5
Attachment 1: Case Studies 5
Attachment 2: Overall Internet Advertizing 7
References 8 10
Executive Summary
Record sales continue to decline as more and more people get their music through peer-to-peer file sharing and torrenting. Internet radio site like Pandora, Rhaosody and Slacker Radio pay artist and record companies a small amount of money each time they play one of their songs. The websites make money selling advertisements that both appear in the browser windows and play in-between songs as well. Social networking sites are very popular and allow for many different opportunities to advertise. This report will detail the different advertising plans offered by most internet ad services, so one can better decide which service works best for their personal business needs. Then the benefit of being able to measure the effects of internet ads will be covered. Finally a few recommendations will be offered.
Introduction: Changing Advertising Mediums
Traditional advertising mediums like newspapers, T.V., and terrestrial radio have become ineffective at reaching people. They are much less effective platforms especially for advertising to Gen-Y, who is increasingly fulfilling their media needs over the internet. Internet radio sites are becoming increasingly popular for discovering new music and listening to music. Internet radio and social networking sites both allow a plethora opportunities gather demographic information in order to determine if they are the people who buy their produce. Specifically targeted ads allow advertisers to pick the specific demographic, geographic, time or any other criteria to best reach your audience.
Internet Advertising Format
Advertisements on internet radio sites and social networking sites offer pretty much the same options as other internet advertising. There are several different options depending on advertising budget and target audience. The best part about internet advertising is that one can measure the results and adjust advertising plans to better suit ones needs. Here are some common advertising plans:
∙ CPM – Cost Per Mille, or, CPT- Cost Per Thousand- Refers to paying for one thousand loads of an ad.
∙ CPC – Cost Per Click- Refers to paying for each individual click that redirects the uses to the targeted website.
∙ CPV – Cost Per Visitor- refers to paying based to the number of visitors to go to your website.
∙ CPV - Cost Per View- refers to being charged each time an ad is displayed to a unique user.
∙ CPA- Cost Per Action- refers to paying only when a purchase is made on the advertisers website.
Social networking sites also offer almost free advertisement campaigns through the use of many of their “group” and “event” functions. Any company looking to be competitive in the future needs to be advertising on internet radio and social networking sites.
Customizable, Targeted Advertizing
Internet advertizing follows a fairly similar range of services; however, cost and options can vary so it is important to shop around. Some websites, like Myspace, handle their own advertising while; AdBrite is the company that handles Pandora Radio’s advertisements. Companies like AbBrite.com, offer completely customizable ad plans to best attract your audience and make the best use of advertising money. Experts agree that, “specific targeting alone saves tons of cash on your marketing budget” (Vignes).
∙ Customizable settings allow for direct targeting of customers
∙ Geographic options allow advertisements to only one zip code, which means that small businesses can advertize with these services.
∙ Customizable key words allow you to enter endless options to target you market.
∙ Social networking and Internet Radio allow a multitude of demographic information to be gathered for the use of internet appetizing.
Do not waste advertising money and time with old traditional advertizing. Realize the benefits of internet radio and social networking’s specific ability to target audience members when the are social, listening to music and in a good mood very perceptive to advertising.
It’s Measurable
Besides the customization options the ability to measure increase in web traffic is arguably the best advantage over traditional advertising.
∙ Great for increasing brand awareness.
∙ Can track the affects of changing options in demographics.
∙ Increased performance can be optimized with immediate feed back.
No longer do advertisers have to wait and only assume their advertizing dollars are working; now they can get almost immediate results.
Recommendation
I would strongly recommend With the over all tread being a huge increase in advertizing spent on internet, advertizing especially on social networking sites that you start a progressive and aggressive internet marketing campaign. It should specifically concentrate on social media and internet radio and music. Less and less people are buying CD’s but they are still attending shows and concerts so advertize to them.
It does not take a lot to run one of these campaigns and they can be utilized by small business as well as multinational corporations. It is important that trained skilled professionals guide you in this process as to not waste valuable resources, this is where Proximity can help you get the most out of internet advertising.
Attachment 1: Case Studies
This Chart shows the CPA for the gaming company Pogo, before and after internet advertizing with AdBrite.
Chart 1. CPA of Pogo before and after Adbrite.
Source: AdBrite. http://www.adbrite.com/mb/how-advertisers-cs-pogo.php. Web.
Here the affects of AdBrite can be seen increasing the monthly visits to the VW. website.
Chart 2. NMV of Volkswagen before and after Adbrite.
Source: AdBrite. http://www.adbrite.com/mb/how-advertisers-cs-volkswagen.php. Web.
Attachment 2: Over all Internet Advertizing
http://www.briansolis.com/2009/07/the-decline-of-advertising-and-the-rise-of-social-media/. Web.
References
Adbrite. (2010) AdBrite – Overview for advertizers. Retrieved May, 7 2010 from
http://www.adbrite.com/mb/how-advertisers-cs-volkswagen.php. Web.
Adbrite. (2010) AdBrite – Overview for advertizers. Retrieved May, 7 2010 from
http://www.adbrite.com/mb/how-advertisers-cs-pogo.php. Web.
Solis, Brain. (2009) The Decline of Traditaional Advertising and the Rise of Social Media. Retrived May, 7 2010 from http://www.briansolis.com/2009/07/the-decline-of-advertising-and-the-rise-of-social-media/. Web.
Vignes, Beau. Ghotibait. (2010). Internet Advertizing vs. Traditional Advertzing. Retrieved May 8, 2010 from
http://www.ghotibait.com/internet-marketing/internet-adversiting-vs-traditional-advertising/. Web.
Mater, Alan. Buzzle. (2010) Pay-Per-Click Advertising vs. Traditional Online Advertising. Retrieved May 7, 2010 from http://www.buzzle.com/articles/pay-per-click-advertising-vs-traditional-online-advertising.html. Web.